Chaman Lal Setia Exports Ltd. (530307) Earnings Call Transcript
November 12, 2025
Earnings Call Speaker Segments
Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you all to the Q2 and H1 FY '26 Post Earnings Conference Call of Chaman Lal Setia Exports Limited. Today on the call from the management, we have with us Mr. Rajeev Setia, Joint Managing Director and CFO. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risks and uncertainties. Also a reminder that this call is being recorded. I would now request the management to brief us about the business and performance highlights for the quarter ended September 2025, the growth plan and vision for the coming year, post which we will open the floor for Q&A. Over to you, sir.
Good afternoon, everyone. Chaman Lal Setia is working as per its principle. True marker always is profitability of the business. Yes, this quarter or this 6 months, the sales have come down by INR 150 crores approx but profitability ratio is almost okay, perfect. So I'm going to get a lot of questions on this issue. The figures are in front of you already data is with you. So better let's start the question and answer.
Do you want to quickly brief about what's happening globally, which has affected this volume growth? And how do you see the situation from here on now with the harvesting season now coming up?
Yes. You see because business goes with economic loss and habits of the business people the prices of rice which were in '23, '24 were highest ever, '24, '25, they have been coming down -- gradually prices are coming down. And currently also the prices are low. The average for quarter ending '23, 31st March '23, price is around low and up both sides. INR 80 was the highest level and the lowest level was around INR 60. The average is around INR 71 a kg. And in '24 also, it came down partially, but at the end, it sustained the same. And for March '25, it is INR 60, it's a INR 10 fall. Then the prices gradually keep on going down. The customer waits for the right time to buy. You see what happens, the psychology in the business not in our industry, in other parts also, when the prices are going up, everybody starts following that product. Let's take the example of gold. Gold prices INR 60,000, INR 70,000 continued for a long time, and people were slow on buying. And when the prices start going up, went above the INR 1 lakh, every second person was purchasing the gold. So the same psychology goes in our business also when the prices were high, they were buying. And now the prices are going -- gradually slow down, low price. And the customers are also delaying their buying or slowdown on their buying. But we, as a company, if we had some rice at the higher price, we waited because we have financial strength, we could hold the material and rice is not a perishable product. So whenever we got the opportunity, good buyer or paying buyer we sold and maintained our profit. And as the low price purchases are concerned, we could accordingly sell. But yes, the sales have definitely come down. People are waiting for the -- I mean, waiting for the bottom [ down below ] and which I feel it is now. And in this particular season, the sales are very quickly picking up now. So I expect at least I'll reach INR 1,500 [indiscernible]. And secondly, this year, the crop size is very good, basmati. And overall, it's 1 million tonne rice production of the country. And of course, there was flooding in Punjab, Haryana was intact, no problem. UP was fine. Rajasthan and MP were fine and other parts, Uttarakhand was fine, Jammu Kashmir, no problem. Punjab, which has 32.5 lakh hectares growing up paddy. And it has -- there was a reported loss of 2 lakh hectares, 2 lakh hectares or 2.5 lakh hectares, it's not too much. And out of that area, Basmati, I don't think is more than 30% for that particular land. So there is no big loss for basmati. So the prices had gone up suddenly when the flooding came. But after fortnight, they were again back to the level. So now the prices are low. The buying is coming from all part of world. And let's see I'm confident about this.
[Operator Instructions] We'll take the first question from Ayush.
Sir, my first question is that with the recent floods in Punjab, where do you see paddy prices and eventually impact on shortfall in supply on the end procurement prices and hence, the selling price?
I have a little explained just now. Punjab has area under cultivation for paddy 32.5 lakh hectares. And this flooding had, it is announced 2.5 lakh hectare. So 30 lakh hectare is intact, no damage by flooding. And out of this 2.5 lakh hectares, 30% that particular area where the flooding has happened, about 30%, 35% area is under basmati. Rest is with the normal non-basmati rice per month [ PTC ]. So of course, there was escalation in prices because of the flooding, but it sustained for a week. After that, it started coming down. So the crop size is very good. We had good rain this year. The quality of rice is good. Crop in UP is very good, crop in Haryana as well. So hopefully, there will be no interruption in the business because the prices are very low this year, and this is the right time because my customers are asking, which is the right time to buy if you want to buy big because when the prices were higher, they were buying according to their demand. And now when the prices are coming down, they are waiting for the right time. So that has caused the fall in our revenue also, but now it is very quickly picking up.
Okay. So my next question is you did mention about customers. So why are the prices coming down?
It's demand and supply. Economy plus area under cultivation is growing every single year. New evolved varieties are coming. So they have grown. I mean it's no longer in GI areas going beyond the GI areas also. UP, I had never heard about rice in [indiscernible].
Okay. So my final question is that what is your strategy to bring the premium grade products which you are working on? And when do we see its benefit in terms of margin and turnover?
Repeat your question?
So I'm asking is what's your strategy to bring in the premium grade products, which you are working on? And when do we see the benefits of the same in terms of margin and turnover?
You see it's always good for exporter or manufacturer when the prices at the point of buying are low. And that is happening this year. The prices are quite low, and we are procuring in a very big way. We have full financial strength. We had a very huge money deposited in the banks, which we are taking out and putting on the rice. So I mean from the low, it is more possibility of going high. From high price to achieve higher price is relatively difficult. So the prices are very good. And many times, we have seen during the buying season, suddenly some people start gambling, they raise the prices. This year, the industry is going very meticulously not rising, not unnecessarily competing. So the prices are good. Demand have to be there from [indiscernible].
We will take the next question from Manish Kela.
Sir, I want to draw your attention to one of the conferences which happened in the first week of October, which was hosted by Arihant Capital. Now our company was also a participant in that conference. So Q2 was already over, right? The conference happened in the first week of October. So Q2 was already over. Now in that conference, we have given a guidance that Q2 is going to be better than Q1, whereas the fact is Q1 was better when we look at Q2. So when we had full visibility that, look, this is how the quarter panned out, I mean, I think that sort of a statement kind of becomes very misleading, especially from a shareholders' perspective. So just wanted to understand your thoughts behind this.
Can you little bit recall what was said in that meeting when the meeting happened at Arihant.
That happened in the first week of October. So it was hosted by Arihant Capital. So I have received notes which says that the management has guided for Q2 performance to be better than Q1 performance.
Manish, the conference was between 22nd to 25th September, not first week of October, just to correct that point.
Yes. So even if that being the case, I think we had only maybe 1 week left before the quarter kind of came to a close. So I think by then, the management would have had a fair idea or a fair understanding as to how the quarter kind of behaved. So I think when a statement like Q2 is going to be much better than Q1 comes out and there are investors tracking your company, it kind of becomes a little misleading. So just wanted to understand to as to.
Because the demand in the preceding 1, 2 months were good and we were confident that this quarter will grow but late when the prices started coming down when the next crop report was very good. So the customers deferred their contracts or slow buying was there.
I fully understand, sir.
It was not calculated in advance, we were confident.
I fully understand, but all that I would suggest is maybe as a company, it is always better that we under promise and over deliver rather than doing it the other way around. I've been tracking this company since long, and I fully respect the management, the integrity of the management. So I have no doubts about what the company can achieve, right, going forward. So all that I would say is maybe the company can be a little careful, especially when statements are going out from the management. That is all that I want to highlight.
You are absolutely right. We'll be more careful.
We'll take the next question from Pavan Kumar.
I just wanted to, first of all, understand what were your domestic volumes. I understand you have given the export volumes in the presentation. And also, is it like the current prices are at INR 65 is what you said correct? Is that right, sir?
Yes. The price of [indiscernible] 64, 65, 66 roaming around.
So what -- I just wanted to understand from your experience in the industry. So how does the cycle play out? So naturally, my understanding would be at this point of time, you would be building the inventory for yourself so that you can sell at maybe higher prices next year, right, correct?
Obviously, we are very -- I mean, if you look at the factory, these days, it's the queue of 50, 40 truck.
Okay. And how much do we need to age this rice, sir, before we -- whatever we are procuring in this particular season before we are able to sell it.
You see even -- it is all rice to steam rice and steam rice start looking good after 3, 4 days of production, but still aging helps. So we will be disposing old stock first for the customers by December, I think it depends if the quality of rice this time is very good. It's looking very good, even the new crop also. So with the aging of 1 month or 1.5 months, it will start growing better.
Okay. And on the demand scenario, what are -- what do we think, sir, going forward?
The questions were asked by a lot of customers. I was in Germany in Anuga Exhibition from 4th to 8th, a lot of customers from different part of the U.S., Canada. So those days, I think flooding had happened or not, I don't remember. But because of the prices, everybody was addressing we will buy. And I have been telling that the prices are very good. Why do you wait so we bought orders so and now again, more and more orders are coming.
And additionally whatever was the capacity CapEx which we have done, everything is commissioned now, right?
Everything is commissioned now. The plants which were promised in Karnal, they are complete and working. In Gandhidham new unit was put up that was opened in July. And 1 old unit which was in the rented godown that has been brought out to the family. That will be in production maybe I mean it's steady run, the trial runs we [ have to done ]. I'm going on Saturday to start this trial runs. Once they are done then develop. [Foreign Language]
We will take the next question from Madhur Rathi.
Sir, the volume for domestic for Q2 was 4650 tonnes.
Do we have -- in our discussions with our customers, sir, do we have any idea about how is the inventory level at our customers end? And can we expect the pent-up demand whenever the pricing decline stabilizes?
Yes. You see what happens when one season is out and new season is coming for the [indiscernible] crops, the customer always look how much is the crop size, what would be the prices. And in this particular year, we very candidly and told them the prices will be low. So we don't want to deceive our customers, the prices will go up, you buy now. We clearly very clean heart, clean hands we tell them, and that was right. So now the bottom out is there. Prices are very low. [ $6500, you divide by $88. It's nothing -- it's less than $800 -- around $800 costing, I'm talking ]. So it's very right time for the customers to buy. If they buy, we are procuring also. We have a large procurement. And if they buy and gradually, if the prices start going up, then sky is the limit for us. [Technical Issue]
Got it. Sir, but when we say that the export volumes have declined for H1 due to our customers delaying the order because of the lower prices or the prices decline or else they are thinking that the prices might decline further and they will buy it at a later stage? Sir I am trying to understand -- sorry, sorry, sir, please go ahead.
The first quarter, this geopolitics issues matter a lot. When U.S. came out with this tariffs, so it hit not only U.S. India business, it hit all around business. And the customers all around the world, they started taking pause also for buying. So the second you know, [indiscernible] season had good prices they were asking and we have been very clean heart and that prices will be low. They wanted to wait, let them wait. They should have waited and they waited and definitely, that is going to give opportunity to us as well as our customers.
Got it. Sir, just a clarification. So whenever we speak to our customers, sir, what is the general inventory level that our customers carry? And currently, is it at a much lower level than what it would be maybe past -- H1 of FY '25? Is it fair to assume?
No, we never ask the question -- this question, how much stock you have, it's not our [ preservatives ]. We don't ask them what exactly they are doing. We push for our own sales -- we give them good prices and suggest them to buy. For some people feel that maybe the prices will come down. And we tell them you strictly buy as per your requirement, don't buy larger. Faith and our credibility with the customer is important.
Got it. Sir, sir, last year, the prices were around INR 60 per kg for and this year, they are INR 64 to INR 65. Is that -- did I hear it correctly?
And last year, they were relatively high, not too much. In the beginning, they were quite high. I mean INR 83, they were top of all, very high prices. In the beginning of last season, the prices were low. And thereafter, they again went down. But this -- I mean, at the current level is a little lesser than last year, I feel. But we will have to check out with the figures.
For the past 4 years, our revenue has been kind of stuck at the INR 1,400 crores to INR 1,500 crores level. And this year also, it seems that we will be at those levels. So was the capacity the only constraint for us over the past 3, 4 years? Or there is also a realization -- so I understand there is a realization factor as well. So till what extent was the capacity an issue for us? And the INR 2,000 crore revenue that we were expecting, sir, can we expect it in FY '27?
I am projecting at least INR 1,500 crores will definitely achieve. I'm targeting now because we had targeted more INR 1,700 crores, INR 1,800 crores at one point, we thought it will be. [Foreign Language] Sorry, what's your question? There was interruption.
So was there a capacity issue for us for the past 3, 4 years because of which our revenue was stagnant?
Capacity, the demand was growing up. So we put up the new capacities. The new 3 SORTEX plants were put in Karnal and 1 extra in Mundra. So obviously, we have put CapEx because we have demand. But you see slowdown of the demand in one quarter and may go up in the next quarter, it will keep on happening. And we expect now it's the right time. The season has started, new crop has come, quality is good. We are telling a few people, you never know about the next year quality because agro produce a lot of factors will matter. If there is a lesser rain, the quality of next year may not be that good, which we have this year. So we are pushing the customers to buy and stock also builds up. We are also building up good stock at low prices. Let's see what happens next year.
Sir, so at current realizations for the rice at 64, 65, sir, what would be the optimum revenue potential with these 3 plants coming in? Sir, what would be the optimum revenue and volume potential with the 3 plants coming in, the Karnal, Gandhidham and the other one.
Look, capacity wise, we can achieve INR 2,000 crores if we really have the demand. But I will be a little conservative and INR 1,500 crores I am targeting and that definitely we are going to achieve.
No, sir, I'm not asking for guidance. I'm asking, sir, what would be the capacity -- overall capacity at Chaman Lal Setia, today including these 3 plants in metric ton basis. And sir, the INR 2,000 crore revenue potential, is it at current realization levels? And if realizations improve, can that increase further as well?
They can increase, but I'm factoring both sides increase in dollar value. But INR 1,500 crores, I'll stick to that something I'm confident to reach.
And sir, our capacity in metric ton, what is our current capacity in metric ton basis?
I don't count capacity with the machinery. I count the capacity what is outflow every day. We have capacity of 25 to 30 container movement every day.
Got it. Sir, just a final question from my side. Sir, last year, we had started our H1 with around INR 170 crores, INR 180-odd crores of inventory that moved to INR 220 crore level for this year. Sir so where do we see the inventory levels by March FY '26, can it be higher than the INR 500 crores we did in March '24? Or can it be -- where do we see our inventory levels by FY '26.
Yes, the peak level of inventory has been approx INR 500 crores because I raised my insurance accordingly. And I think it will cross this year. I don't know -- I know what is my present level of buying inventory. Already I know, but I don't know whether it is right or wrong to say at this moment. It's inside information, I don't know.
No, sir, just I'm trying to understand that how much benefit we can get from buying these lower inventory. Okay, sir, it's fine, we can cross INR 500 crores level.
[At the present levels ] project it will go beyond INR 500 crores.
We will take the next question from Manish.
Sometime back you talked about basmati rice also being grown in regions like Mathura. So are we seeing a pattern wherein basmati rice is increasingly being grown in other areas? If yes, how is the output when you compare it to the output that we get from, say, regions like Punjab or Haryana, which are traditionally rice growing areas. So that's one. Maybe I'll let you answer this question, and then I'll ask my second question.
You see these -- if we talk about basmati -- traditional basmati, which used to be by the nature, 1,000 years in background. The rice was being grown only in Punjab, Haryana, Dehradun area, Uttarakhand. Three areas had basmati. And [ totally speaking ], publicly, I should not say, but not even the entire state, Haryana almost all state had basmati. Punjab, entire state did not had basmati growing areas. Now entire Punjab, entire Haryana, UP, the new evolved varieties of basmati, they are grown all around. It's grown in MP also, grown in Rajasthan also. So it's growing. It may go to Chhattisgarh tomorrow. So it's good.
Yes. But sir according to you, because we have decades of experience in this industry, how is the quality of rice, which has grown in the other states vis-a-vis Punjab or Haryana?
Haryana and Punjab quality is much better than others.
Are we also seeing a demand from our clients that maybe the rice, which comes from Punjab or Haryana, the insistence is more on that particular rice variant?
The raw steam rice is more preferred from Punjab and parboiling is maximum from Haryana. So both sites, we have [ to see ].
And sir, my second question is with respect to exports.
Difference between Punjab and Haryana. They -- it's old Punjab, you know, and it's divided in [ 61 ]. So the quality is same. No problem there.
Yes. Sir, my second question is with respect to exports. So when we export rice, let's say, to countries like U.S. or U.K. is the demand only coming from ethnic consumers? Or do we have even the locals in these countries who maybe prefer basmati rice over other variants. So how do those trends look like?
If I go by the history, historically, it was always oriental people. Oriental means India, Pakistanis, Afghanis, Irani, Iraqi people living around the world but now you see even the British -- these [ Godha ] people, Americans or Europeans, they love our rice. If you go to Indian -- any Indian restaurant now in Europe, you will be -- sometimes I feel I'm a lone Indian, all our local German people sitting. So the demand is coming with them. And even the importers from Australia, we have companies which are owned by Australian people. I mean the natives of that country in Sweden, I have customers who are local, they are buying, yes oriental people also. They are the biggest, but they are -- this change from native people is also buying -- is growing basmati.
I think that's very heartening to hear. And sir, my final question, you also talked about floods in Punjab, which did impact basmati crop production, but still the prices kind of fell. Again, while we know that, yes, there are those geopolitical tensions and maybe other market reasons as to why the prices have fallen. But do you think because the area under cultivation, especially the new states that you talked about, right, which were not traditionally known for growing basmati, but they have started kind of growing basmati. Is that also putting pressure on basmati prices because of which the prices are not rising up? What is your assessment on that?
You see if farmer is happy, he's earning, he is growing. And if we get cheaper and we can sell more easily outside the [ world ]. So the profitability has to be there. We will keep on doing business. And from low, the prices can go up from the high, it is difficult to get that.
We'll take the follow-up question from Madhur Rathi.
Sir, what was the inventory loss during H1? Was there any inventory loss during H1 FY '26?
No, no, what is your question? inventory?
Loss.
Loss?
Yes sir.
No, how come the inventory loss?
No sir, he is asking if we have taken any inventory hit in H1.
No, we have not got any hit at all. You see, let's assume we have some rice purchased at a higher price. That is that and if we sell at a low price, definitely, we are going to hit. I believe that's your question. But the company is strong enough to keep the stock for any long period. We are cash rich. If we have stock, let's assume at a higher price, we'll wait till we sell at a profitable price from any part of the world because we are in 95 countries. We have multiple -- around 400 customers around the world. So we have capacity to sell even if we have bought at a high price and low price if we have purchased, we have more opportunity to earn.
Got it. Sir, on the margin front, sir, for H2, sir, can we expect the margins for the remaining half of the year to be better than the 9.3% we did during the H1?
No. I mean I can project about the coming period, the next 6 months till March, definitely, our sales will grow, our margins will grow because our buying is absolutely perfect time. We are regularly buying. Every day we are buying. It's a good price, cheap price, and we know where and how to sell.
We take the next question from [indiscernible].
Sir, our domestic sales also saw significant decline. So was the demand impacted in the domestic market as well?
Actually, we -- truly speaking, we are not concentrating much on the domestic market. We -- and because the domestic market, we have had it -- doesn't give good return too. So our entire focus is right now in the exports. Even Sankesh is already in U.S. event. He is going to meet all the customers who are big buyers. And we are deciding whatever the tariffs, they have assured also -- they have assured they will be buying and there is an exhibition of private label PML that is called where the private label customers come, that is only for private label, and we are one of the largest from India for private label packing. So let's see what results come.
Sir, regarding U.S. only, sir in this quarter because of this tariff issue, like our exports to U.S. impacted like we were able to maintain [indiscernible].
Because many customers ask us to put the orders on hold, they are waiting something will happen. But so far, it is see-saw going on for U.S. But after all, they have to eat. It's not tax by our government, it is their government who have taxed them. They have to eat finally when the stocks will deplete over there, they will come to us. That's why Sankesh [ was sent to ], talk to all the customers and encourage them when it was $10,000 ocean freight you were selling, just assume once again, it's $10,000 freight has come in the form of tariffs. So carry on.
So sir, now in this quarter, have like supplies to U.S. resumed or are they.
Supply has never stopped. It is going. But yes, of course, it has come down. It is going. I mean complete halt is not there. It's going. Some buyers are buying a few -- 1 or 2 customers those who are selling to modern trade, these chains -- for them, they say it's [indiscernible] at the point of [indiscernible].
Whatever like we are exporting to U.S. it's the buyer -- customers are taking the entire 50% tariff hit or we are taking some of that hit on [ our end ].
Whatever price we have sold, we have not deviated. We have strictly told them this is our price and it's your headache. Once in the past, Indian government has imposed INR 8 a kg duty -- export duty. We are exporting to U.S. and they did not -- I mean we have to suffer and they did not cooperate and why should we do that? It's your -- I mean the [ concepts ] are written like that if any duty is imposed by your government, you have to pay and our government we have to pay.
Got it. And sir, your September H1 balance sheet, your inventories have actually come down. So given the low paddy prices, doesn't it make sense to like stock up on inventory like so what's your view on that?
No. You see when it's end of season, a new crop is coming. I mean September is the end of the season, we try to finish up the existing stock wherever we sell. So obviously, the stock level will come down. It's not 0 or very low, but it's reasonably -- reasonable stock because for some customers, we have to keep old stock, old rice also and we always wait for the new season, and we are expecting low prices in this season which improved and we are buying very large.
Okay. So now the Kharif crop will come and you are buying.
It is coming already. It's already coming. Rice is coming. Kharif is coming. We are buying both.
And sir, it seems that in the export market also like the transmission of prices, is it that quick because like you were mentioning that initially, it was geopolitical issues, but they became aware of prices coming down. So the end prices like, are the buyers like, that they're able to negotiate that quickly or like how is it?
You see this WhatsApp, in this era. Every single information in 5 seconds goes away. All datas are available, how much export happened, all figures are in public domain. We can't conceal much from the customers. But of course, we have to earn. We'll put our own prices. The customer, we are doing apart from our own brand, which is Maharani in 40 countries, maybe small or big. Netherland, we have very large sales in Netherland and some African countries, we have good sales of Maharani. So we do a lot of private label and satisfied customer, they say, Rajeev give us the best quality, don't care for the price, we will pay. So we get our margins, which we deserve in business also.
[indiscernible] export sales, how much of it is like white label and how much is it under the Maharani brand like.
It is around 10%, 15% is Maharani. Rest is all white label.
Okay. And sir for the white label part, like there is not much pricing power in terms of like you can't keep the prices.
I don't agree with that. Many times, I feel my Maharani is giving me low return and the private label is giving more. I mean wherever it's a new customer, we get the entry of our brand, we sell at lower prices. And then he say -- I mean the consignee says, I'm yet to promote this brand, give me some facilities, give me this. So -- and one who has his own brand, he works more harder for his own brand and many times, it's both way you know. Sometimes -- in some places, Maharani is giving very good return, particularly from African countries and even Netherland also customer is giving good. In some part, they are just limited. But this private label, I mean they don't change [ easily ]. If the quality is good, if they change and they -- in 1 lot, they get bad rice, the business is closed. So they are conscious.
Sir, for the private label series in country is it not possible for us to keep some of the price fall and not pass it on or it's too competitive, like how is that?
We have no competition truly. It's not so easy to do private label work. It's very hard. And for large quantities and continued sales, there is competition, but not too much. Some people don't -- I mean the customer who are with me for 10 years, 20 years, 30 years, 5 years, 6 years, they don't deviate. I mean somebody buying from us if they are happy, why would they go here and there. Of course, competitors go, meet them. Many time I get a call after 1 hour, they give them coffee, tea and then say bye-bye.
Okay. But sir, just to understand this better, you can't -- I'm sort of repeating the question, but you can't like when the prices fall, you can't maintain your realization. You have to pass it on to your customers like.
It happens I mean when there is a drastic fall in the prices and then we definitely have to share with the customer. We reduce the prices, we buy at a low price. Our profitability continues in the same way. I mean if we -- if the prices are low, our buying has also come at the low price. And if we have as I already told, if I have a stock at the higher price, I would not sell at the loss. We don't book a loss, we keep the rice. We find the customer. It's a big work. There are customers who pay good price also. And if it is lying, aging also helps.
Okay. So sir, your focus is on maintaining the profitability, not like.
That is -- I have this motto, first motto, the true marker of any business is profitability and that has to be there otherwise no.
We take the next question from Akash Bhalla.
I had 2 questions. First one was regarding the freight situation. I mean the other thing has stopped thanks to Trump. So has the freight gone down? I was reading our annual report this year and realized like last financial year, we made INR 23 crores of more profit, but they were all gone into extra freight. So if you can tell something about it. And also in your investor presentations, I mean, going forward, if you can add it because it's a major expense.
Yes. Thankfully, right now, the prices -- the ocean freights are absolutely correct, not high. They have come down and they have made the business workable at this moment. You never know the future. Whatever happened in the past has been that we had to bear, but now the prices -- ocean freights are perfect.
Okay. And also last con call, you were mentioning something about Russia, I guess, back there, they wanted to get you some business. Have things progressed at that time?
Yes, yes. We have 2, 3 customers right now, and there is addition also 1 or 2 more have come because we participated there in Russia in the exhibition and we got customers.
And also, I was reading an article, it said like since our Indian government, it lifted off MEP, it has led to fall of rice prices globally. And since you guys, I think the other director is, I think, Chairman something for Rice Export Association. Have you guys been lobbying in the government like to.
There is no longer an MEP issue. It's long back it was withdrawn. There's no MEP issue.
No, MEP, what I'm saying, like since the government removed MEP, the prices have fallen globally, and it is impacting the rice prices globally, right? So to earn more, I mean, if something can be done at the Government of India level in terms of -- because India is the biggest exporter of rice, right, to make it more viable for exporters because exporters have been suffering a lot of loss in last 1 year so.
Once again, I will reiterate that MEP the government had brought before [ elections ] because they were scared that non-basmati may not go that they had their own reservations. So that issue is over. Now it is open trade. I mean economic laws are playing the role for business purchase sale -- so it's fairly going any part of the world.
We'll take the next question from Navneet.
Okay. Rajeev ji, just one question. You mentioned the revenue guidance of INR 1,500 crores. Is that for the current financial year, FY '26?
Yes, that is what I'm saying. We must -- I'm confident we will achieve INR 1,500 crores in the [indiscernible].
So that would mean about INR 900 crores in the second half. You've done INR 600 crores in first half. So you are targeting INR 900 crores in the second half.
Yes. We are confident into the kind of orders we are getting, kind of new companies are coming to our [indiscernible].
We'll take the follow-up question from Manish.
Sir, there was also a talk about your discussions with one of the Saudi clients. So just wanted to understand as to where are we on that?
That is almost at maturity stage or a complete set of orders have come, but before the commencement or shipping, still some discussions are going.
Okay. So is this the reason as to why you are confident that you'll be able to hit the INR 1,500 crore revenue mark for the rest of the year?
Yes. Yes, one of that reason, one of the reason. And some of the countries where my revenue and volume had fallen, they have given the orders.
All right. And my final question, sir, because we've seen declining rice prices in the past few months, do you think this can also act as a blessing in disguise from the perspective that maybe, let's say, if a customer currently say consumes Jasmin rice and if the price of Jasmin rice is higher than basmati rice, maybe it helps us push basmati price in the market -- basmati rice in the market because the prices of basmati rice say lower to Jasmin rice. I just use Jasmin rice as an example. I'm not too sure as to how the rates are trending when you compare basmati to Jasmin, but just wanted to understand your thoughts on that as well.
Jasmin rice is also good. I have eaten a couple times outside and including in Chinese restaurant I get. It is a good rice. And marketing of Thai people are very good. But our prices are quite low and we hope they will go up also. The business is likely to grow for the industry. Even the government of India, we are telling them to promote this product. Basmati is a joint monopoly of Pakistan. Maybe tomorrow, it will be our own monopoly. If the water is stopped or something happens or the way Pakistan economy is going, this year, they have good rice, no doubt. So if we promote our basmati around the world, we can get good business as a country, I'm talking not as a company. We are doing our hard work.
We'll take the last question for the day. Sahil you can go ahead please. Since the participant is not responding, sir, you would like to give any closing comment.
Closing comment from me.
Yes, sir.
It was a very good meeting. All of the participant, they had asked very genuine and good questions, which have been tried to very.
Sir, my voice is audible, sir.
Yes, you are.
My question is with reference to inventory volumes and sales volume. As per annual report as on 1st April '24, our opening stock was 550,000 quintals, right? Closing stock on 31st March '25 was close to 680,000 quintals. And we did around production of 220,000 quintals, right? So with these figures, we arrive at our sales volume of around 113,000 quintals. So if we just look at the sales volume and the closing stock, the sales volume is 113,000 and the closing stock is 680,000. So we are having inventory close to around 5x, 6x of our annual sales. So how we are looking at this inventory, sir?
I think there is something wrong in your questioning. The inventory -- the peak level of inventory was INR 500 crores -- and in this particular year, now it has come down.
I'm referring from the annual report, the data given in the annual report. Recent annual report only '24, '25 only I'm referring. And not values, volumes I'm referring inventory, volumes and the production.
[ Okayish ], it was.
Sir opening stock was 580,000 quintals.
580,000 quintals, okay?
You did production of 220,000 quintals and your closing stock was 680,000 quintals. So your sales was close to 114,000 quintals.
114,000 quintals.
So I mean to say if we compare the sales, 114,000 with the closing stock, 680,000, that is -- we are having inventory around for 5, 6 years. That's what I'm able to understand if my -- this understanding is correct, sir?
5, 6 years?
That's what the data is coming, sir, from the annual report.
Let me have a look and Vinay, I will come back to you and you can answer that. I'll have to check with my accountant, chartered accountant.
Sir, you can provide us in addition to the values, request us this volumes. How much is the in quintals sales volume and how much is the closing stock?
You see there are 2 parts. One is we -- from Paddy we process the rice and one we buy rice also. So maybe there is any kind of confusion there. Maybe I'm not sure. But I'll myself go through the annual report that part, and I'll check with the chartered accountant first.
Yes, sir. I requested Page 151 of the annual report, sir.
151 of the annual report.
Yes, sir. Yes, sir.
Okay. And I will answer -- send the answer to Vinay, and he will contact you and explain.
Sir, you want to give any closing comments?
Closing comment, you see the [ way I have showed ], our endeavor is to reach first our past track record of INR 1,500 crores, and let's hope it goes more and yes maintain the profitability, integrity for every [indiscernible] we assure to the investors. Thank you.
Okay, sir. Thank you to the management team for valuable time, and thank you to all the participants for joining on the call. This brings to the end of today's conference call. You all may disconnect now. Thank you.
Read the full transcript via the API
You're viewing the first half of this call. Get the complete Chaman Lal Setia Exports Ltd. transcript - plus 252,000+ transcripts from 12,000+ companies, speaker segments and full-text search - through the EarningsAPI REST API or hosted MCP server.
Get an API key View API docs →For developers and AI pipelines
Programmatic access to Chaman Lal Setia Exports Ltd. earnings transcripts and 252,000+ others is available through the
EarningsAPI REST API and the hosted MCP server.
Quarterly plans from $105 - full transcripts, speaker segments, full-text search,
and the /api/v1/transcripts/recent polling endpoint for ETL pipelines.